I am presenting the Annual Report and financial statements of your Bank for the financial year 2016-17. I would like to share with you the performance highlights and financial indicators of the Bank along with the business environment within which your Bank operated during the year.

Economic Scenario:

The Indian economy has witnessed several path breaking developments in the year 2016-17. From Demonetization to the landmark GST Bill passage, the year has seen several initiatives & policy reform measures. These changes are taking place in the country at a time when inflation is benign amidst a modest current account deficit, credible fiscal consolidation efforts, rising foreign exchange reserves, increase in foreign inflows and growth supportive policy measures and reform initiatives.

On the economic growth front, as per the second advance estimate the Central Statistical Organization (CSO) estimated India’s real GDP growth at 7.1% in the financial year 2016-17 compared to 7.9% in the financial year 2015-16. Despite the transient impact of demonetization on the growth front, India continues to be the fastest growing emerging market economies in the world. The growth prospects are expected to strengthen in the days ahead on account of several factors, including, pickup in discretionary consumer spending after demonetization, the emphasis in the Union Budget on the rural economy and affordable housing, higher govt. capital spending & pick-up in export growth, improved investor confidence after passage of bills such as GST, Insolvency & Bankruptcy Code etc.

As far as the banking sector is concerned, the performance remained subdued amidst rising delinquent loans, consequent increase in provisioning, persisting corporate sector stress and continued slowdown in credit growth. However, the banking system has witnessed a steady rise in deposits ever since the government announced demonetization. The substantial inflow of deposits in the form of demonetized currency in the banking system has prompted the banking sector to cut their lending rates so as to revive the demand in the economy. Demonetization has also brought the digitalization of banking services to the forefront. The banking sector is laying greater emphasis on providing improved services to its clients and also upgrading its technology infrastructure, in order to enhance the customer experience as well as to give banks a competitive edge.

Performance Highlights:

The major highlights of your Bank’s performance during 2016-17 are:

Business Growth:

Total Business of the Bank has reached Rs,3,60,916.41 crore as on 31st March, 2017 as against Rs, 3,45,493.08 crore as on 31st March, 2016, registering an absolute growth of Rs,15,423.33 crore.

While total Deposits grew by 7.50% to reach Rs,2,20,559.62 crore, total Advances increased by 0.02% to reach Rs,1,40,356.79 crore as on 31st March, 2017.

During the year, the Bank concentrated on reducing the Bulk deposits and replacing it with retail deposits. The level of Bulk deposit has come down from 45.53% as at 31.03.2016 to 38.34% as on 31.03.2017.

During the financial year Bank has achieved CA, SB and CASA targets. The Bank has mobilized Rs,3,719 Crore from 31,13,343 new SB accounts and Rs,1,545 Crore from 90,287 new Current accounts during the financial year.

Share of CASA in total deposit improved to 26.47% as on

31.03.2017 as compared to 22.14% as on 31.03.2016.

Asset Quality and Provisioning:

During the year there was severe pressure on quality of assets and the rise of NPA in your Bank was not an isolated case but part of overall Industry phenomenon. The Gross NPA of your Bank increased from Rs,14,544.25 crore (9.98%) as at 31.03.2016 to Rs,17,045.22 crore (11.70%) as at 31.03.2017and Net NPAs increased from Rs,9,160.14 crore (6.53%) to Rs,11,692.18 crore (8.33%) during this period.

The provision coverage ratio as on 31.03.2017 is 55.17% with respect to Gross NPA as against 55.05% as at 31.03.2016.

The focus during the year was on recovery of NPAs. The employees rose to the challenge and your Bank could effect a cash recovery and up gradation of NPAs to the tune of Rs,3350.87 crore as compared to Rs,1596.04 crore in the previous financial year.

Your Bank will continue its focus and rigorous efforts through vibrant credit monitoring and NPA recovery system to arrest effectively the rising trend in slippages during the coming years.

Other key performance indicators:

Total Income of the Bank increased by Rs,1415.38 crore during the financial year to reach Rs,22561.78 crore.

Interest Spread increased by Rs,211.55 crore (4.99%) during the year. Non-interest income increased by Rs,1355.09 crore with a growth rate of 78.10% whereas non-interest expenditure increased by 7.72%.

Cost of deposits of the Bank has come down from 7.51% for the year 2015-16 to 6.74% for the year 2016-17.

Operating Profit of the Bank increased by Rs,1344.51 crore during the year to reach Rs,4439.53 crore. However, with increased provisioning on NPAs, the Bank posted net profit of Rs,561.21 crore for the year 2016-17.

The Bank’s consolidated Net worth improved from Rs,11,399.59 crore as at 31.03.2016 to Rs,12,749.90 crore as at 31.03.2017.

Priority Sector Lending:

The Bank has achieved regulatory target under priority sector advances and its sub-sectors. Total Priority Sector advances stood at Rs,60604 crore as on 31.03.2017 which works out to 42.75% of Adjusted Net Bank Credit (ANBC) as against the regulatory target of 40%. As in the past years, your Bank conducted special campaigns during FY 17 to augment agriculture advances in both Rabi and Kharif seasons. Furthermore, your Bank introduced tailor-made area specific schemes to cater to the specific needs of the farming community.

A number of initiatives were taken by your Bank to support MSME sector, given its potential to generate employment and growth. Under Pradhan Mantri MUDRA Yojana (PMMY), Bank has achieved 103.86% of annual disbursement target.

Pradhan Mantri Jan Dhan Yojana/Financial Inclusion :

Your Bank has been a front runner in the Financial Inclusion efforts. The Bank looks at it not just as a social commitment but also as an effective and profitable business proposition. The Bank has implemented Financial Inclusion through Branchless Banking in 4727 locations as on 31.03.2017. Number of accounts under financial inclusion increased to 40.86 lakhs (31.03.2017) from 39.71 lakhs as on 31.03.2016. The Bank has actively participated in implementation of PMJDY. During FY 2016-17, Bank has opened 1.40 lakh accounts under PMJDY and reached a level of 27.33 lakhs accounts. The balance in the PMJDY accounts has increased to Rs,1051.74 crore (31.03.2017) from Rs,749.63 crore as on 31.03.2016. The average balance in nonzero balance accounts as on 31.03.2017 has been increased to Rs,4668/- from Rs,3663/- as on 31.03.2016. The percentage of zero balance accounts has been brought down to 17.59 % (4.80 lakh A/cs) as on 31.03.2017 from 21.07% (5.46 lakh A/cs) as on 31.03.2016. Incentive Scheme has been formulated for Bank Mitras for getting funds in the Zero balance accounts. Issued RuPay debit cards to 95% of the account holders and passbook to 90% of the account holders. Aadhaar number has been seeded in 73.90% of the operative PMJDY accounts, which is one of the best in the Industry. Corp Bank is one of the leading Banks in carrying out Aadhaar based (AEPS) transactions in Micro ATMs. A few Bank Mitras have done more than 2000 AEPS transactions and UIDAI has awarded the Bank with an incentive of Rs,9.60 lakhs during FY 2016-17 for achieving more than 2000 AEPS transactions in 64 Micro ATMs.

- Bank has launched BHIM-UPI which facilitates and makes fund transfer easy, quick and hassle free. It is a step towards achieving the goal of universal electronic payments, a less cash society and financial inclusion, using the latest technology. UPI provides immediate money transfer through mobile device round the clock 24x7 and 365 days. The money is transferred in a secured environment with immediate confirmation feature.

- Bank has launched Corp ApnaApp in seven languages which simplifies the usage of SMS Banking and eliminates the need for remembering many SMS syntaxes.

- Bank has enabled Corp Rewardz App on iOS platform also.

CSR and Empowerment Initiatives:

1. The Corporation Bank Economic Development Foundation®, a Non-Profit Economic Outfit Trust has been pursuing its objective of fulfilling social obligation in tune with corporate mission. All CSR activities of the Bank are conducted under the aegis of CBEDF. Financial grants to the extent of Rs, 205.53 lakhs were disbursed for execution of various projects of social concern during the year 2016-17 through CBEDF. Amongst others, CBEDF implemented the following major CSR projects during FY 2016-17.

2. For the welfare of the underprivileged, Bank granted Rs,19.71 lakhs to various Institutions during 2016-17 through “CorpKiran”. The major activities included providing food, books, computers, water purifier, etc., to poor school children and inmates of orphanages, old age homes, destitute homes, helping physically and mentally challenged people. The major activities carried out during the year under CorpKiran includes installation of projector and computers to Govt./aided schools. Orphanages were provided with furniture and water purifiers.

Branch/ATM Expansion:

- No. of branches increased from 2,440 to 2,517 and Branchless Banking units increased from 4,724 to 4,727, during the year.

- No. of ATMs increased to 3,169 and E-Lobbies increased to 335 as at 31st March, 2017.

Awards and Accolades:

The Bank has taken various encouraging steps towards value addition, expansion and inclusive banking as a result of which your Bank was conferred with the following prestigious awards during 2016-17:

1. Bagged the SKOCH Silver Award for attaining the No.: 1 position as channel partner of LIC of India for the past three financial years. The Bank was also awarded Order of Merit under the following three categories:

— CAPS-Virtual Account based Collection of Corporate

— Aadhaar Enabled payment System

— Point of Sale

2. Won the following two MSME Banking Excellence Awards-

2016, conferred by Chamber of Indian Micro Small & Medium Enterprises (CIMSME) under the following categories:

— Eco-Technology Savvy Bank Award for Mid-Sized Bank - Winner.

— Best MSME Bank Award for Mid-Sized Bank - Runner-Up.

3. Awarded, once again, with the “National MSME Excellence Award 2017” by the Federation of Industry, Trade & Services [FITS].

4. Bagged three Runner up awards under Social Banking Excellence Awards instituted by The Associated Chambers of Commerce & Industry of India (ASSOCHAM). The Bank bagged the awards for Agriculture Banking, Priority Sector Lending and Best Social Bank under Large Bank category for 2016.

5. Received ten awards from NABARD at the State Level Awards Programme held at Bengaluru for best performance under SHG/JLG Bank Linkage Programme in Karnataka,

— The Bank has been adjudged first for 2013-14 in following categories: overall performance under SHG — Bank Linkage programme; highest share of SHG lending to priority sector lending; highest number of

SHG''s credit linked; highest number of JLG’s credit linked; highest number of SHG’s credit linked by a branch - Pandavapura branch in Mysuru zone; and highest average JLG loan size. The bank has also been ranked first for 2014-15 under highest number of SHG’s credit linked; and highest quantum of loan disbursed. The Bank stood second under highest quantum of loan outstanding and third under highest number of JLG’s credit linked.

7. Received “Best MSME Bank Award 2016” from Shri Haribhai Parthibhai Chaudhary, Hon’ble Minister of State for MSME, Government of India at the 4th SMEs Excellence Award — 2016 held at New Delhi on 6th December, 2016.

Acknowledgements

Before I conclude, I take this opportunity to extend my sincere gratitude to all the shareholders for their persistent support for overall development of the Bank. I sincerely thank the members of the Board, Govt. of India, Reserve Bank of India, all the regulatory authorities and organizations and Insurance Companies for their valuable support and guidance. I thank all our customers for their continued support & patronage and the opportunity given to us to serve them and develop business relationship. I also place on record my appreciation for the employees for their dedication, commitment and contribution towards the growth of the Bank.

The valuable support of all the stakeholders and the confidence they repose in the Bank will motivate us to work with renewed vigour to improve the business performance, year after year.

More from markets

Date Sources:Live BSE and NSE Quotes Service: TickerPlant | Corporate Data, F&O Data & Historical price volume data: Dion Global Solutions Ltd.BSE Quotes and Sensex are real-time and licensed from the Bombay Stock Exchange. NSE Quotes and Nifty are also real time and licenced from National Stock Exchange. All times stamps are reflecting IST (Indian Standard Time).By using this site, you agree to the Terms of Service and Privacy Policy.